Sructural transformation and industrialization : Analysis of the interactions between telecommunications services and manufacturing sector in sub-Saharan Africa
DOI:
https://doi.org/10.18559/rielf.2019.2.5Keywords:
structural transformation, industrialisation, economic growth, telecommunications servicesAbstract
This article has two main objectives. First, it analyses the effect of the manufacturing sector on economic growth (i), and second, it highlights the effect of interactions between the manufacturing sector and telecommunications infrastructure (ii). To achieve this, panel data are mobilized. They cover Sub-Saharan African (SSA) countries from 1990 to 2015. Fixed effects, random effects estimators and the Hausman-Taylor estimator (1981) are used for the purposes of robustness and taking into account individual specificities that do not change over time. The results show that the manufacturing sector positively affects economic growth in SSA countries and this effect is more pronounced with the use of telecommunications services.
Downloads
References
Amemiya, T., & MaCurdy, T. E. (1986). Instrumental-variable estimation of an error-components model. Econometrica, 54, 869-880.
View in Google Scholar
Aryeetey, E., & Moyo, N. (2012). Industrialisation for structural transformation in Africa : appropriate roles for the state. Journal of African Economies, 21, ii55-ii85.
View in Google Scholar
BAfD, OCDE. (2016). Perspectives économiques en Afrique 2016 : villes durables et transformation structurelle. Paris : OCDE Éditon.
View in Google Scholar
Baltagi, B. H., Bresson, G., & Pirotte, A. (2003). Fixed effects, random effects or Hausman– Taylor? : A pretest estimator. Economics Letters, 79(3), 361-369.
View in Google Scholar
Baumol, W. J. (1967). Macro-economics of unbalanced growth : The anatomy of urban crises. American Economic Review, 57(3), 415-426.
View in Google Scholar
Chakravarty, S., Mitra, A. (2009). Is industry still the engine of growth? An econometric study of the organized sector employment in India. Journal of Policy Modeling, 31, 22-35.
View in Google Scholar
Cohen, W. M., & Levinthal, D. A. (1989). Innovation and learning : The two faces of R&D. Economic Journal, 99(397), 569-596.
View in Google Scholar
Cohen, D., & Soto, M. (2007). Growth and human capital: Good data, good results. Journal of Economic Growth, 12, 51-76.
View in Google Scholar
Cornwall, J. (1977). Modern capitalism. It’s growth and transformation. New York : Martin’s Press.
View in Google Scholar
Dasgupta, S., & Singh, A. (2005). Will services be the new engine of Indian economic growth?. Development and Change, 36(6), 1035-1057.
View in Google Scholar
Doumbouya, S. F. (2004). L’accord general sur le commerce des services : les données du jeu pour la Guinée. (Cellule d’étude de politique économique no. 2-5).
View in Google Scholar
Fagerberg, J. (1994). Technology and international differences in growth rates. Journal of Economic Literature, 32, 1147-1175.
View in Google Scholar
Fagerberg, J. & Verspagen, B. (1999). Modern capitalism in the 1970s and 1980s. In: M. Set- terfield (Ed.), Growth, employment and inflation. Houndmills, Basingstoke : MacMillan.
View in Google Scholar
Fagerberg, J., & Verspagen, B. (2002). Technology-gaps, innovation-diffusion and transformation : An evolutionary interpretation. Research Policy, 31, 1291-1304.
View in Google Scholar
Falvey, R. E., & Gemmell, N. (1996). Are services income-elastic? Some new evidence. Review of Income and Wealth, 42(3), 257-269.
View in Google Scholar
Fei, J. C. H., & Ranis, G. (1964). development of the labour surplus economy. Theory and policy. Homewood, IL: Irwin.
View in Google Scholar
Gallup, J. L., Sachs, J. D., & Mellinger, A. D. (1999). Geography and economic development. International Regional Science Review, 22, 179-232.
View in Google Scholar
Gerschenkron, A. (1962). Economic backwardness in historical perspective. Cambridge Harvard University Press.
View in Google Scholar
Groningen Growth and Development Centre/Conference Board (GGDC). (2009). Total Economy Database. GGDC.
View in Google Scholar
Guerrieri, P., & Meliciani, V. (2005). Technology and international competitiveness : The interdependence between manufacturing and producer services. Structural Change and Economic Dynamics, 16, 489-502.
View in Google Scholar
Hausman, J. A., & Taylor, W. E. (1981). Panel data and unobservable individual effects. Econometrica, 49(6), 1377-1398.
View in Google Scholar
Higgins, B., & Higgins, J. D. (1979). Economic development of a small planet. New York, NY : Norton and Co.
View in Google Scholar
Hirschman, A. O. (1958). The strategy of economic development. Boulder and London Westview Press.
View in Google Scholar
Hodge, J., & Njinkeu, D. (2002). Télécommunications: engagements, politiques, offres et demandes éventuelles de l’Afrique. Mimeo.
View in Google Scholar
Hogl, K, Pregernig, M, & Weiß, G., 2003. Wer sind Österreichs WaldeigentümerInnen? Einstellungen und Verhalten traditioneller und „neuer“Waldeigentümergruppen im Vergleich. (Discussion Paper, Institute of Forest Sector Policy and Economics).
View in Google Scholar
Inklaar, R., Timmer, M. P., & van Ark, B. (2008). Market services productivity across Europe and the U.S. Economic Policy, 23(53), 139-194.
View in Google Scholar
Intven, H., & Tétrault, M. (2000). Manual de reglamentación de las telecomunicaciones. Banco Mundial.
View in Google Scholar
Iscan, T. (2010). How much can Engel’s law and Baumol’s disease explain the rise of service employment in the United States?. The B.E. Journal of Macroeconomics, 10(1), 1-43.
View in Google Scholar
Jacob, J., & Osang, T. (2007). institutions, geography and trade: a panel data study. (Depart- mental Working Papers No. 0706). Southern Methodist University, Department of Economics.
View in Google Scholar
Jorgenson, D. W., Ho, M. S., & Stiroh, K. J. (2005). Information technology and the American growth resurgence. Cambridge, MA : MIT Press.
View in Google Scholar
Kaldor, N. (1966). Causes of the slow rate of growth of the United Kingdom. Cambridge : University Press.
View in Google Scholar
Kaldor, N. (1967). Strategic factors in economic development. Ithaca, NY : Cornell University Press.
View in Google Scholar
Kitching, G. (1982). Development and underdevelopment in historical perspective. Lon- don : Methuen.
View in Google Scholar
Krueger, A., & Lindahl, M. (2001). Education for growth : Why and for whom?. Journal of Economic Literature, 39, 1101-1136.
View in Google Scholar
Lin, J. (2011). From flying geese to leading dragons: New opportunities and strategies for structural transformation in developing countries. Maputo : WIDER Lecture.
View in Google Scholar
Pacheco-López, P., & Thirlwall, A. P. (2013, August). A new interpretation of kaldor’s first growth law for open developing economies. (University of Kent, School of Economics Discussion Papers, KDPE 1312).
View in Google Scholar
Park, S. H. (2009). Linkages between industry and services and their implications for urban employment generation in developing countries. Journal of Development Economics, 30, 359--379.
View in Google Scholar
Park, S. H., & Chan, K. (1989). A cross-country input-output analysis of intersectoral relationships between manufacturing and services and their employment implications. World Development, 17(2), 199-212.
View in Google Scholar
Pritchett, L. (2001). Where has all the education gone?. World Bank Economic Review, 15, 367-391.
View in Google Scholar
Riddle, D. I. (1986). Service-led growth : The role of the service sector in world development. New York, NY: Praeger.
View in Google Scholar
Rodrik, D. (2009). Growth after the crisis. Cambridge, MA : Harvard Kennedy School. Rostow, W. W. (1960). The stages of economic growth. Cambridge : Cambridge University Press.
View in Google Scholar
Syrquin, M. (1984). Resource reallocation and productivity growth. In M. Syrquin, L. Taylor & L. E. Westpahl (Eds.), Economic structure and performance (pp. 75-101). New York, NY : Academic Press.
View in Google Scholar
Syrquin, M. (1988). Patterns of structural change. In Handbook of development economics (vol. 1, pp. 203-273). Amsterdam : Elsevier.
View in Google Scholar
Szirmai, A. (2012, December). Industrialisation as an engine of growth in developing countries 1950- 2005. Structural Change and Economic Dynamics, 23(4), 406-420.
View in Google Scholar
Szirmai, A. (2015). Socio-economic development (2 ed.). Cambridge : Cambridge University Press.
View in Google Scholar
Szirmai, A., & Verspagen, B. (2015). Manufacturing and economic growth in developing countries, 1950-2005. Structural Change and Economic Dynamics, 34, 46-59. Retrieved from https://doi.org/10.1016/j.strueco.2015.06.002
View in Google Scholar
Timmer, M. P., & de Vries, G. J. (2009, June). Structural change and growth accelerations in Asia and Latin America : A new sectoral dataset. Cliometrica, 3(2), 165-190.
View in Google Scholar
Thomas, J. J. (2009). Why is manufacturing not the engine of India’s economic growth. Examining Trends, 1959-1960. Mimeo
View in Google Scholar
Triplett, J. E., & Bosworth, B. P. (2006). ‘Baumol’s Disease’ has been cured: IT and multifactor productivity in US services industries. In D. W. Jansen (Ed.), The new economy and beyond: Past, present, and future (pp. 34-60). Cheltenham, PA : Edward Elgar.
View in Google Scholar
UNIDO. (2013). Industrial Development Report 2013 sustaining employment growth : The role of manufacturing and structural change. United Nations.
View in Google Scholar
Verspagen, B. (1991). A new empirical approach to catching up or falling behind. Structural Change and Economic Dynamics, 2, 359-380.
View in Google Scholar
Wonyra, K. O. (2016). Libéralisation du commerce des services de télécommunications. Éditions universitaires européennes.
View in Google Scholar
Downloads
Published
Issue
Section
License
Copyright (c) 2019 Poznań University of Economics and Business
This work is licensed under a Creative Commons Attribution 4.0 International License.
